The FTC is also taking action
against a 10th dealership, Courtesy Auto
Group of Attleboro,
Mass.

Fowlerville Ford is one of nine U.S. auto dealerships that will settle deceptive advertising charges as part of a nationwide investigation by the Federal Trade Commission dubbed Operation Steer Clear.

The investigation focused on the sale, financing and leasing of vehicles, the FTC said today.

The FTC said the dealers in this case made several "misrepresentations" in print, Internet and video advertisements that violated the FTC Act, falsely leading consumers to believe they could buy cars for low prices, get low monthly payments through financing and/or make no upfront payment to lease vehicles.

Fowlerville Ford allegedly violated the FTC Act by sending mailers that deceptively claimed consumers had won a sweepstakes prize, when, in fact, they had not. Some of its ads also allegedly violated the Truth in Lending Act and Regulation Z by failing to disclose certain credit-related terms.

"Car ads are an important source of information for serious shoppers," said Jessica Rich, director of the FTC's Bureau of Consumer Protection, in a statement. "Dealers' ads need to spell out costs and other important terms customers can count on. If they don't, dealers can count on the FTC to take action."

The proposed consent orders settling the charges in the nine cases are intended to prevent the dealerships from engaging in similar deceptive advertising in the future, the FTC said.

The settlements — which are not yet final — involve proposed consent agreements that prohibit the dealerships from misrepresenting in any advertisement for the purchase, financing or leasing of motor vehicles the cost of leasing a vehicle, the cost of purchasing a vehicle with financing, or any other material fact about the price, sale, financing or leasing of a vehicle.

In some cases, the proposed consent orders also require the dealerships to clearly and conspicuously disclose terms required by these credit and lease laws.

Fowlerville Ford also is prohibited under the proposed order from misrepresenting material terms of any prize, sweepstakes, giveaway or other incentive.

The agreements will be subject to public comment for 30 days, beginning today and continuing through Feb. 10, 2014, after which the Commission will decide whether to make the proposed consent orders final.